what to do when an employee quits before working off/paying back loan/advance

[Mom's assistant]

What is the name of your state? Maine

My mother owns a small business (3 employees-including me p/t). She had an employee that borrowed money with plans (verbal agreement) to work it off. This past spring/summer this employee decided to give her 2 week notice so she could work @ her "Dream Job". My mother, happy for her but concerned that she might not get her money back, decided to write up an agreement/contract stating that the employee would agree to make weekly payments and/or work 1 day a week till balance was paid off. She asked the employee to sign it with a notary present then had it notarized. The employee then went off to work else where on good terms after her two weeks was up. She did arrive to work for my mom 1 day each week to work towards paying off the debt. About a month or so later the employee decided that the other job wasn't working out and asked if she could come back to work for my Mom full time. My Mom being the nice person she is (hence the loan) took her back. Well... Three weeks ago my Mom and that employee had a discussion/disagreement one day after work regarding the employees' attitude. The employee flipped out and walked out. The employee did return to work the next work day with no mention of the discussion/disagreement or anything (was cordial and acted as if nothing was wrong) however she did not show up for work two days later. A few days after that my Mom received a nasty note (left in her car) that said that the employee had quit and that she would continue to make payments as agreed in the "stupid" contract. She also had many other mean/nasty (untrue) things written in the note but that is beside the point. Besides my Mom being hurt by all of this (She had done nothing but tried to help this girl... plus she is a communicator who would have like to work it out) she has yet to receive any money. This employee also has a few of my mother's belongings which she would like to get back. What should my mother do? She has considered taking her to small claims court but even if she won the claim that doesn't guarantee she will get her money. Right? Any suggestions?

 

[HomeGuru]

What is the name of your state? Maine

My mother owns a small business (3 employees-including me p/t). She had an employee that borrowed money with plans (verbal agreement) to work it off. This past spring/summer this employee decided to give her 2 week notice so she could work @ her "Dream Job". My mother, happy for her but concerned that she might not get her money back, decided to write up an agreement/contract stating that the employee would agree to make weekly payments and/or work 1 day a week till balance was paid off. She asked the employee to sign it with a notary present then had it notarized. The employee then went off to work else where on good terms after her two weeks was up. She did arrive to work for my mom 1 day each week to work towards paying off the debt. About a month or so later the employee decided that the other job wasn't working out and asked if she could come back to work for my Mom full time. My Mom being the nice person she is (hence the loan) took her back. Well... Three weeks ago my Mom and that employee had a discussion/disagreement one day after work regarding the employees' attitude. The employee flipped out and walked out. The employee did return to work the next work day with no mention of the discussion/disagreement or anything (was cordial and acted as if nothing was wrong) however she did not show up for work two days later. A few days after that my Mom received a nasty note (left in her car) that said that the employee had quit and that she would continue to make payments as agreed in the "stupid" contract. She also had many other mean/nasty (untrue) things written in the note but that is beside the point. Besides my Mom being hurt by all of this (She had done nothing but tried to help this girl... plus she is a communicator who would have like to work it out) she has yet to receive any money. This employee also has a few of my mother's belongings which she would like to get back. What should my mother do? She has considered taking her to small claims court but even if she won the claim that doesn't guarantee she will get her money. Right? Any suggestions?

**A: you are correct. Going to court and winning does not guaranty $$$.

 

[eerelations]

There are only two possible things your mother can do:

1. take the girl to small claims court and maybe get her money back; or

2. do nothing and not get her money back.

And that's it. Sorry.

I hope your mother learns something from this experience - never lend money to employees! In all my years in HR (about 20 years) I've seen employers lend money to employees about 12 to 15 times - and the employers were burned every single time. When employers have asked my advice about lending money to employees, I've said no don't do it - every single time.

 

[cbg]

BTW, a lot of people misunderstand this so if this is something you already know, don't be offended. But having a document notarized means only that the people signing it have been confirmed to be the people they claim to be. It has nothing to do with the legality or the enforceability of the document in question.

 

[Mom's assistant]

What to do when

I was afraid that was what I would hear (see ) . Oh well. I didn't think it would hurt to check it out. I hope she learned her lesson also!

Thank you!! I appreciate your time and quick response.

 

[pattytx]

The other problem I saw with this scenario is that an employee cannot work "for free". You can certainly have a voluntary withholding agreement where the employee agrees to have XX deducted per paycheck but you can't just not pay them. Involuntary servitude was outlawed in the U.S. ages ago.